‘Saint Alan’ Tried to Hide Housing Meltdown

Some shocking insights into discussions going on at the Fed. From the Huff Post:

As top Federal Reserve officials debated whether there was a housing

bubble and what to do about it, then-Chairman Alan Greenspan argued that

the dissent should be kept secret so that the Fed wouldn’t lose control

of the debate to people less well-informed than themselves.

“We run the risk, by laying out the pros and cons of a particular

argument, of inducing people to join in on the debate, and in this

regard it is possible to lose control of a process that only we fully

understand,” Greenspan said, according to the transcripts of a March

2004 meeting.

This type of condescending elitism was one of the main reasons the economy melted down in the first place. Greenspan clearly did not understand the process ‘so well’ otherwise he would have recognized the need to regulate mortgage backed securities and prevent people from wild speculations on the housing market. He didn’t, and as the head of the Federal Reserve, takes a huge amount of responsibility for the economic crisis that almost brought the entire planet to its knees.

Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.